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RECAST MORTGAGE: WHAT IS IT AND HOW DO YOU CALCULATE IT?

Are you a Real Estate Investor or home buyer looking for ways to save money on your mortgage? If so, you may be interested in learning about the concept of recasting mortgages. Recasting mortgages is a strategic mortgage repayment method that enables borrowers to reduce their monthly payments by paying down part of the principal balance – without having to refinance their loan. At MY SMART COUSIN, we understand the challenges of finding, financing, and even refinancing a house for you and your family, or purchasing an investment. We are an experienced Real Estate Investment coach who can help you weigh the pros and cons of various paths, and implement them with confidence. We specialize in helping new and aspiring real estate investors, particularly Black and Brown folks and women, buy and manage their first property, and buy a house for the price of a car. In this blog post, we’ll dive deep into what’s involved with recasting mortgages and how you can potentially benefit from them. We’ll also look into how to calculate a recast and explore some important pros and cons of this financing option. So if you’re tuned in and ready to learn more, let’s get started! WHAT IS A RECAST MORTGAGE AND HOW DOES IT WORK? The idea of a Recast Mortgage is pretty straightforward: you pay more toward the balance on your remaining loan payments, which reduces the principal. Now here’s where it gets interesting – that reduction means your monthly payment amount will go down. Generally, in order to benefit from a recast mortgage, you have to make a lump sum payment of anywhere from $5,000 to $20,000 or more, depending on the size of your loan. You must also be up‐to‐date with all regular payments, or the lender won’t consider recasting. However, if this is something you can do, then in no time you could potentially lower your interest rate and start seeing some real savings. Plus, this process allows you to keep the same terms of your existing loan so that any additional tax breaks due from it still apply. It really can’t get much better than that! HOW TO CALCULATE A RECAST MORTGAGE? Even if you’ve never heard of a recast mortgage, you may want to consider learning how to calculate one. With a recast mortgage, you can refinance your loan without actually refinancing–meaning you don’t have to go through the same lengthy process to get better terms on your loan. Calculating your recast mortgage repayment is simple. All you need to know is your existing balance and the principal amount of your extra payment. Then, subtract the extra payment from the existing balance and use that as the new balance for terms that better suit your needs. It’s an easy, stress-free way to get more out of your mortgage! THINGS YOU SHOULD KNOW BEFORE OPTING FOR A RECAST MORTGAGE Before you consider recasting your mortgage, there are some important points to keep in mind. While it can provide lower payments and more financial flexibility over the long haul, it’s not a decision to be taken lightly. · First, talk with your lender as they may have their own specific requirements that need to be fulfilled before they agree to recast your mortgage. · You’ll also want to make sure you understand any fees associated with the process, as these often can add up quickly. · Finally, if you’re considering taking out extra money or increasing the size of your loan when you recast, be aware that this may put added strain on the rest of your finances. Evaluate your budget and the source of funds you will use to make the down payment, and e sure that you will still have access to emergency funds should an emergency occur. Overall, if done correctly, recasting could potentially prove to be an invaluable resource for those who find their current mortgage payments too high and are looking for relief. PROS AND CONS OF RECASTING YOUR MORTGAGE Recasting your mortgage can be a good idea if you have some extra cash to dedicate towards your monthly payments, as it can significantly reduce the time until what really is a generation-long loan— 30 years— is paid off. It may also lower the amount of interest that will accumulate given the shorter tenor, and save you some money in the long run. However, it’s important to look out for fees such as closing costs, as they may counteract any potential savings. Additionally, recasting isn’t available with all lending institutions, so it’s important to do your research and check what your current lender offers. If done correctly, recasting can be a great way to pay off your mortgage sooner than expected, with no refinancing or requalification processes. WHEN IS THE BEST TIME TO RECAST YOUR MORTGAGE Trying to figure out when the best time is to recast your mortgage can be daunting, however, it can be a great way to save tens of thousands of dollars in interest over the life of a loan. Before considering recasting, it’s important to look at ways to lower your existing mortgage payments without increasing your loan amount or term. Paying off any credit cards that have higher interest rates first should be prioritized as this could help reduce monthly payments more than a mortgage recast would. Said another way, the cost of money with a credit card is 25% or even more, versus the cost of money with a mortgage at 7% to 8%. If you have a large credit card balance, say $10,000 or more, and are making minimum monthly payments, you are better served to pay off your credit card debt rather than recasting your mortgage. In terms of timing, experts often urge homeowners in a strong financial position to look into recasting after 12 months or more post the closing of their home, when they are more likely to have some extra cash saved up to cover the costs. Depending on lender policies, there may

WHAT IS A SPLIT-LEVEL HOUSE AND SHOULD YOU INVEST IN ONE?

Are you considering investing in Real Estate and torn between bungalows, two-story houses, and split-level homes? Purchasing a property can be an overwhelming process with critical decisions to make. Many investments require careful consideration regarding the type of house being purchased. Split-level homes are one such variety that has gained popularity over time, due to their unique design and multi-functionality. As such, split levels can be a great fit for a real estate investment portfolio.

THE F.I.R.E. PLAN – A STEP-BY-STEP GUIDE TO REACH YOUR FINANCIAL POTENTIAL

Some people might think that financial success just boils down to buying low and selling high. While the timing and a bit of luck from buy-sale transactions are part of the equation, long-term financial stability and freedom also depend on the long-term ownership of assets such as real estate. There’s no question that successful Real Estate Investing requires thoughtful planning and execution. But it can be tough to know where to start. Think you’re stuck in a financial rut? MY SMART COUSIN can help get your life back on track. With our track record as an experienced Real Estate Investment Coach, we teach aspiring and new real estate investors, with a particular focus on Black and Brown folks and women, how to buy a house for the price of a car, as we have done dozens of times. In this blog post, we’ll walk you through the basics of the F.I.R.E. planning method, providing you with a step-by-step guide to reaching your financial potential. So whether you’re just starting out or you’ve been investing for a while, read on to learn more! WHAT IS THE F.I.R.E. PLANNING METHOD AND WHAT ARE ITS BENEFITS? Any financial planner worth their salt will tell you that one of the most important things you can do for your future is to start saving for retirement as early as possible. The earlier you start, the more time your money has to grow and recover from financial downturns. However, for many people, the thought of retirement and legacy wealth seems like years into the future, and they simply can’t imagine putting away money for something that feels so far away. This is where the F.I.R.E. planning process comes into play. F.I.R.E. stands for Financial Independence, Retire Early. In other words, the F.I.R.E. method focuses on positioning you to achieve the kind of enduring financial freedom that allows you to cut the working cord now, not years into the future. The major benefits of this method are: ·   It allows you to map out a path to financial independence so that you can retire early. ·   It takes into account your current income and expenses and forecasts how much money you will need to save and/or generate each month in order to reach your goal. Spoiler alert—you will not be able to rely on reducing your expenses to achieve financial independence. Asset building, such as through real estate investment, will be key. ·   It provides advice on investing and offers other tips for achieving financial freedom, based on your lifestyle goals, expenses, and liabilities. While it may seem like a daunting task, with the help of the F.I.R.E. method, you can make your dream of early retirement a reality. HOW TO CREATE YOUR OWN FIRE PLAN? If you’re looking to retire early, it’s important to have a plan in place. Creating a F.I.R.E. plan can help you get specific about how much is enough to replace the income you’re currently making, through investments and entrepreneurship. Here are a few things to keep in mind when creating your own F.I.R.E. plan: ·   Determine your current financial situation. This includes understanding your income, expenses, debts, and investments. This will give you a baseline to work from as you create your plan. ·   Set your goals. What is your target retirement date? How much money do you need to have saved? What lifestyle do you want to maintain in retirement? Answering these questions will help you create a plan that is tailored to your specific goals. ·   Create a budget. Once you know your current financial situation and what your goals are, you can start to create a budget. This budget should account for both your current and future expenses. Make sure to include some flexibility in your budget so that you can account for unexpected costs. ·   Find ways to save money.  In order to retire early, you’ll need to save as much money as possible. One easy way to do this is to automate your savings so that a fixed amount is deposited into your retirement account each month. ·   Invest wisely. In addition to saving money, you’ll need to invest wisely in order to reach your goals. This means understanding the different types of investment options— from real estate investing, to stocks and bonds— and choosing the right mix of investments for your needs. It’s also important to periodically rebalance your portfolio so that it continues to align with your goals. Creating a F.I.R.E. plan can help ensure that you are on track to reach your goal of financial independence and retiring early. By following these steps, you can create a personalized roadmap that enables you to live comfortably today while moving your retirement date ever earlier. STEP-BY-STEP GUIDE TO REACHING YOUR FINANCIAL POTENTIAL Achieving financial success doesn’t happen overnight. It takes time, discipline, and a commitment to learning and growing. However, if you’re willing to put in the work, it is possible to reach your financial potential. Here’s a step-by-step guide to help you get started: ·   Set realistic goals. Determine what you want to achieve financially and develop a plan to get there. Remember to be realistic and patient; wealth accumulation takes time. ·   Stay disciplined. Once you have a plan in place, stick to it. Discipline is key when it comes to money management. ·   Make learning a priority. Financial success requires continuous learning and growth. Seek out resources (books, articles, courses, etc.) that can help you become more financially savvy. ·   Take advantage of opportunities. When presented with an opportunity that you’ve thoroughly researched and has the potential to boost your financial situation, don’t hesitate to seize it. ·   Be patient. Rome wasn’t built in a day, and likewise, a foundation for lasting financial success can’t be rushed. Couple patience with consistency; eventually, you will reach your destination. FAQs ABOUT THE F.I.R.E. PLAN AND FINANCIAL PLANNING IN GENERAL If

HOW TO DEAL WITH CRITICISM AS A REAL ESTATE INVESTOR

When you’re a Real Estate Investor, criticism is part of the job. Whether it’s from family and friends or complete strangers, you’re going to hear negative feedback. It’s important to learn how to deal with criticism in a healthy way so that it doesn’t affect your investing goals. As an Investor, do you face criticism? Don’t worry, MY SMART COUSIN is here!  We can help by providing expertise and resources for budding Real Estate Investors and homebuyers of all stripes–especially those looking to buy a house for the price of a car. As an established Real Estate Investment coach, with a particular emphasis on Black and Brown folks and women, we develop investment strategies specifically designed to meet your unique needs. Criticism, whether from others, or as a drumbeat of self-doubt that can come from within, is part of the growing experience, both in business and in life. In this blog post, we will be sharing a few tips on handling critiques in a constructive manner. CRITICISM IS A NATURAL PART OF ANY BUSINESS- LEARN TO EMBRACE IT It’s inevitable. No matter how great you are at what you do, there will always be someone who criticizes your work. And as a Real Estate Investor, you’re bound to face your fair share of criticism. Whether it’s from a tenant who’s unhappy with the condition of their unit or a friend who has questions about your investment strategy, it’s important to learn to extract any nuggets from the criticism and use them to improve your business. While it’s easy to get defensive when confronted with criticism, try to take a step back and see it from the other person’s perspective. Oftentimes, criticism is based on valid concerns that you can use to improve your business. For example, if a tenant complains about the condition of your property, that’s an opportunity to ensure that you are complying with the landlord-tenant requirements for your jurisdiction as well as to make necessary repairs and improvements. Or, if a neighbor has noise complaints regarding your tenant, view this person as your eyes and ears on the ground and enlist them to contact you first rather than calling the police so you can try to resolve the issue.  By taking the time to listen to criticism and address legitimate concerns, you open the door to turning even the most negative feedback into a positive result. USE CRITICISM TO IMPROVE YOUR SKILLS AS AN INVESTOR No one likes being criticised, but it’s an essential part of becoming a successful real estate investor. By seeking out feedback from experienced investors, you can learn where you need to improve and make the necessary changes to become successful. It’s important to remember that not all criticism is created equal; take the time to find helpful, constructive feedback from people who have your best interests at heart. With their help, you can make the changes necessary to take your investing career to the next level. FINAL THOUGHTS Criticism is a natural part of any business, but it can be tough to deal with when it’s directed at you. As a Real Estate Investor, you need to learn how to embrace criticism and use it to improve your skills. Don’t take the criticism personally – it’s not about you, it’s about the deal or property. Analyze the criticism and see if there is any truth to it. Respond politely and professionally. Doing this will help you grow as an investor and develop resilience in business. Do you face criticism as a real estate investor? How do you handle it? YOU CAN ALSO READ: SPEC HOMES: IS BUILDING A SPEC HOUSE A GOOD INVESTMENT? FOLLOW US: @MYSMARTCOUSIN

SPEC HOMES: IS BUILDING A SPEC HOUSE A GOOD INVESTMENT?

Homebuilding is on the rise and, as a Real Estate Investor or homebuyer, you may be thinking about whether investing in a spec home, that is, a custom home that is built to your specifications, is a good idea. There’s no doubt that buying a that’s already built and pre-owned is cheaper than building one from scratch. However, there are a few compelling reasons why building a custom home might be a good investment after all. In this blog post, we’ll take a closer look at what spec homes are, and consider the question of whether to build one based on current market conditions. We’ll also discuss some of the pros and cons of investing in spec homes, as food for thought, should you be considering this path. So, if you’re thinking about becoming a spec home builder, or just curious about what they are, keep reading! MY SMART COUSIN provides expert guidance on how best to get started in Real Estate Investing today and every day. We all know that becoming a property investor is no easy task. There are so many things to be taken into consideration, and the process can often seem daunting for beginners! Whether it’s purchasing your very first home to live in or investing in a property to begin your dream of owning a portfolio of investments, MY SMART COUSIN has your back as your seasoned Real Estate Coach, guiding and assisting you every step of the way. Whether you’re thinking about what type of property interests you or how to establish your budget, we help aspiring investors, with a particular focus on Black and Brown folks and women, find and invest in properties. WHAT ARE SPEC HOMES, AND WHAT ARE THE BENEFITS OF BUILDING ONE? A spec home, short for speculative home, is a property built without a specific buyer in mind. Builders typically construct spec homes in areas where they think there will be high demand for new homes. When building spec homes, investors must move on two parallel paths, both deploying a strong sales force to sell buyers a concept of their soon-to-be dream home, and working with general contractors to quickly build homes that will be appealing as-is to future buyers. The name of the game with spec homes is to sell the home as quickly as possible after it is completed.

FAIR MARKET VALUE: DEFINITION & CALCULATOR

Home buyers and investors often hear the term “fair market value” when talking about buying or selling a property. But what does it mean? Fair market value is defined as “the price at which a property would sell between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.”  But if you’re thinking about buying or selling a property, it’s important to have an idea of what fair market value is. And luckily, there’s an easy way to calculate it.  We understand that buying a house can be stressful and overwhelming, especially if you don’t know what to do. MY SMART COUSIN is here for all your Real Estate needs! Whether it’s finding an affordable property or helping with financing options so the process goes as smoothly as possible – as a Real Estate Investment Coach, we’ve got just about everything covered at this one-stop shop. We offer tailored solutions to every individual, with a particular focus on Black and Brown folks and women, in every aspect of investing, and particularly for those seeking to Buy a House for the Price of a car, our personal favorite to buy a property!

ARE MANUFACTURED HOMES A GOOD INVESTMENT IN 2023?

FINAL THOUGHTS So, are manufactured homes a good investment? The answer to that question depends on your personal circumstances and preferences. But with all the new features and benefits available now, it’s definitely worth considering if you’re in the market for a new home. And as more and more people are choosing them over traditional housing options, it seems likely that the market for manufactured homes will only continue to grow in years to come. If you’re ready to invest, we can help you find the perfect home for you. Give us a call today! YOU CAN ALSO READ: WHAT IS A DUPLEX AND SHOULD YOU INVEST IN ONE?FOLLOW US: @MYSMARTCOUSIN